JSE-listed Datatec says subsidiary Westcon has entered an agreement that will see it assume the employees, fixed assets, supplier contracts and customer lists of the networking distribution division of troubled Dutch-based Landis Group.
The deal comes days after Dutch newspaper NRC Handelsblad reported that Datatec had reopened talks with the unprofitable Landis Group.
Dutch banks had given the Amsterdam Stock Exchange-listed company until 22 April to produce a rescue plan after the resignation of its board.
Datatec was previously in talks with Landis for all the assets and liabilities of Business Partners but the deal was not concluded.
More than 500 Landis staff in nine European countries will become employees of Westcon and the fixed assets, supplier contracts and customer lists will be assumed for a value not expected to exceed seven million euros. No liabilities or debts will be assumed.
Datatec was previously in talks with Landis for all the assets and liabilities of Business Partners but the deal was not concluded.
European expansion through a combination of organic growth and acquisitions remains a key goal for Westcon, says Datatec CEO Jens Montanana. "This transaction will make the Westcon Group one of Europe`s largest voice and data networking distributors, adding to its established offices in the UK, Belgium and Germany.
"We believe that Westcon`s proven expertise in networking distribution around the world, combined with the existing Business Partner businesses of Landis, will significantly extend our existing business in Europe and build a solid and highly competitive European networking operation for Westcon."
The Landis distribution business is one of the largest in continental Europe with revenues of about $400 million last year. Landis has operations in the Netherlands, Belgium, Denmark, France, Germany, Norway, Sweden, Spain and Austria.
It distributes products from vendors such as Sun Microsystems, Nortel Networks, 3Com, Avaya Communications, Network Associates, Veritas Software and Oracle. Landis is listed on the Amsterdam Stock Exchange.
Westcon CEO Alan Marc Smith says that upon completion of the deal, Westcon`s enhanced market position in Europe will increase its profile and broaden its product portfolio, including the extension of its relationship with Cisco Systems into some of the new markets.
This will allow Westcon to provide more comprehensive solutions to customers.
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